In State Bank of India (SBI) there is a trade, it is up around one percent so we should see it
expiry somewhere over here only. So, we are suggesting a ratio trade where you buy 310 Call and sell two 320 Calls. You are investing close to around Re 1 or 0.50 paisa, that is our loss.
If SBI remains any value less than Rs 330 that is the maximum value you can lose. In fact if SBI goes any value between Rs 310 and 330 you will make profit and Rs 320 is where you will make maximum profit of around Rs 9.50.
If you look at metals, Hindalco Industries has been quite outperforming compared to Tata Steel or Steel Authority of India Limited (SAIL). After this at least short covering rally that we are seeing, it should remain anywhere between around Rs 150 on the lower side to Rs 165 on the upper side.
So, we are suggesting just from this expiry series perspective, sell 140 strike Puts of Hindalco. What is happening is because of the movements that we had in the last few days, implied volatilities are quite high at around 47 percent, hence even the 140 Put is available at close to around 0.45 paisa.
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